SB1691 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1.1. Section 15-741, Arizona Revised Statutes, is amended to read:

START_STATUTE15-741. Assessment of pupils; definitions

A. The state board of education shall:

1. Adopt rules for the purposes of this article pursuant to title 41, chapter 6.

2. Adopt and implement a statewide assessment to measure pupil achievement of the state board-adopted academic standards in reading, writing and mathematics in at least four grades designated by the state board. The state board shall determine the manner of implementation. The state board may administer assessments of the academic standards in social studies and science, except that a pupil shall not be required to meet or exceed the social studies or science standards measured by the statewide assessment.

3. Ensure that the tests prescribed in this section are uniform throughout this state.

4. Ensure that the tests prescribed in this section are able to be scored in an objective manner and are not intended to advocate any sectarian, partisan or denominational viewpoint.

5. Ensure that the tests prescribed in this article collect only types of pupil nontest data that are approved by the state board at a public meeting and published on the website of the state board pursuant to paragraph 7 of this subsection.

6. Include within its budget all costs pertaining to the tests prescribed in this article. If sufficient monies are appropriated, the state board may provide achievement test services to school districts that request assistance in testing pupils in grades additional to those required by this section.

7. Survey teachers, principals and superintendents on achievement-related nontest indicators, including information on graduation rates by ethnicity and dropout rates by ethnicity for each grade level. Before the survey, the state board shall approve at a public meeting the nontest indicators on which data will be collected and shall post in a prominent position on the home page of the state board's website a link to the nontest indicators entitled "What nontest data does the state of Arizona collect about Arizona pupils?". The linked webpage shall state the types of data collected, the reasons for the collection of the data and the entities with which the data is shared. In conducting the survey and collecting data, the state board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.

8. Establish a fair and consistent method and standard by which test scores from schools in a district may be evaluated taking into consideration demographic data. The state board shall establish intervention strategies to assist schools with scores below the acceptable standard. The state board shall annually review district and school scores and shall offer assistance to school districts in analyzing data and implementing intervention strategies. The state board shall use the adopted test and methods of data evaluation for a period of at least ten years.

9. Participate in other assessments that provide national comparisons as needed.

10. Require in the contract for the statewide assessment pursuant to this section that test scores and assessment data from the third grade reading portion of the statewide assessment adopted pursuant to this section be received by local education agencies on or before May 15 of each academic year and that the scores and assessment data from all other portions of the statewide assessment adopted pursuant to this section be received by local education agencies on or before May 25 of each academic year. The state board shall impose penalties on the contractor for scores received after these dates. If the state board alters the statewide assessment testing window for any reason, the state board may adjust the dates by which local education agencies are required to receive the scores and assessment data proportionately. If the state board adjusts the dates by which local education agencies are required to receive the scores and assessment data, the state board may not impose penalties on the contractor unless the scores and assessment data are received after the adjusted dates.

B. The achievement tests adopted by the state board as provided in subsection A of this section shall be given at least annually. Nontest indicator data and other information shall be collected at the same time as the collection of achievement test data.

C. Local school district governing boards shall:

1. Administer the tests prescribed in subsection A of this section.

2. Survey teachers, principals and superintendents on achievement-related nontest indicator data as required by the state board, including information related to district graduation and dropout rates. In conducting the survey and collecting data, the governing board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.

D. Each qualified school and each nonpublic online learning program provider that charges tuition or fees to one or more qualified students as defined in section 15-2401 or 15-2401.01 shall administer the tests prescribed in subsection A of this section to each qualified student if all of the following apply:

1. The qualified school or nonpublic online learning program provider charges tuition or fees to the qualified student during the school year.

2. Either:

(a) The qualified student does not meet the criteria specified in section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii).

(b) The qualified student meets the criteria specified in section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii) and all of the following apply:

(i) The qualified student is learning at a level appropriate for the qualified student's grade level in a specific academic area.

(ii) The qualified student's parent agrees that A passing score on the statewide assessment is required in the specific academic area.

(iii) the qualified school or nonpublic online learning program provider provides any necessary testing accommodations.

3. The qualified student has not participated in the test, as administered by a person other than the qualified school or nonpublic online learning provider. A qualified school or nonpublic online learning provider shall submit to the state board of education and the department of education an affidavit for each qualified student who is excused from testing pursuant to this paragraph. The affidavit must certify that the qualified student participated in the test and identify the person who administered the test. The state board of education shall include a qualified student's test scores in the annual reports required by section 15-743 for each qualified school and nonpublic online learning program provider that submits an affidavit for that qualified student.

D. E. Any additional assessments for high school pupils that are adopted by the state board after November 24, 2009 shall be designed to measure college and career readiness of pupils.

E. F. If a high school pupil who is enrolled in a school district, or charter school or qualified school or with a nonpublic online learning program provider participates in a nationally recognized assessment that is both adopted by the state board of education pursuant to subsection A of this section and administered by a person other than the school district, or charter school, qualified school or nonpublic online learning program provider, the pupil or pupil's parent or guardian may submit the pupil's official score report for the assessment to the school district, or charter school, qualified school or nonpublic online learning program provider. On receipt of an official score report pursuant to this subsection, the school district, or charter school, qualified school or nonpublic online learning program provider shall do all of the following:

1. Record the score in the pupil's file.

2. Report the score to the state board of education and the department of education.

3. If the pupil or pupil's parent or guardian submits an official score report pursuant to this subsection to the school district, or charter school, qualified school or nonpublic online learning program provider before the date on which the school or nonpublic online learning program provider administers the tests prescribed in subsection A of this section, allow the pupil to opt out of participation in the assessment that is administered by the school district, or charter school, qualified school or nonpublic online learning program provider. If a pupil opts out of an assessment pursuant to this paragraph, the school district, or charter school, qualified school or nonpublic online learning program provider shall use the data from the pupil's official score report for the pupil's achievement test data for the purposes of this section. This paragraph does not require a school district or charter school to allow a pupil to opt out of the collection of nontest indicator data or other information that is collected about pupils who participate in the assessment that is administered by the school district or charter school pursuant to this section.

F. g. A test for penmanship shall not be required pursuant to this article.

G. h. If a local education agency requests a raw data file of assessment data for the pupils tested at the local education agency, the department of education shall fulfill the request in a format that is usable for assessment diagnostics within thirty days after the request. The local education agency shall follow all applicable student data privacy laws and may not publicly disclose individual student achievement results.

H. i. A school district, or charter school, qualified school or nonpublic online learning program provider may administer the statewide assessment in the form of a written test if for any of the following applies reasons:

1. A written test is required pursuant to an individualized education program or a section 504 plan as defined in section 15-731.

2. To accommodate special circumstances.

3. For religious purposes.

4. On request by a pupil's parent or guardian.

I. j. For the purposes of this section: ,

1. "Nationally recognized" has the same meaning prescribed in section 15-741.02.

2. "nonpublic online learning program provider" means a person that charges tuition or fees to one or more qualified students as defined in section 15-2401 or 15-2401.01 for a nonpublic online learning program.

3. "Qualified school" means a qualified school as defined in section 15-2401 that is not accredited by a regional or national accrediting organization. END_STATUTE

Sec. 2.2. Section 15-743, Arizona Revised Statutes, is amended to read:

START_STATUTE15-743. Test results; annual reports; five-year cumulative summary; distribution of scores to schools and parents; testing window; definitions

A. The state board of education shall provide annual reports for every each school, and school district, qualified school and nonpublic online learning program provider and the this state as a whole. The state board shall annually submit these reports to school districts, qualified schools, nonpublic online learning program providers, the legislature and the county school superintendents and shall make them available to the public. The state board shall publish and distribute the reports by September 1 and shall also provide a cumulative summary of the reports every five years. The annual reports and cumulative summary results shall include:

1. Average and range scores on the statewide assessment adopted pursuant to section 15-741.

2. Standardized test scores by subject area according to percentiles and stanines for the school, school district, qualified school, nonpublic online learning program provider, county, state and nation.

3. Achievement-related nontest indicator data collected in the survey of teachers, principals and superintendents as required by section 15-741, including information related to dropout rates by ethnicity for each grade level and graduation rates and postsecondary employment and education by ethnicity. In reporting such data, the state board shall not violate the provisions of the family educational rights and privacy act (P.L. 93-380), as amended, or disclose personally identifiable information.

4. The numbers of pupils who have completed the academic standards at grades three, eight and twelve.

B. Test results on individual pupils shall not be made available to the public by name or individually identifiable reference.

C. The state board shall provide a copy of the results from the tests prescribed in section 15-741, subsection A for each school district to that school district. Results may not be released to the public until ten days after the reports are provided to each school district.

D. The state board shall provide each school district, qualified school and nonpublic online learning program provider that is participating in the testing program with a copy of each pupil's standardized norm-referenced test scores in reading, language arts and mathematics, and the associated grade equivalents, percentiles and stanines for the school, school district, qualified school, nonpublic online learning program provider, county, state and nation, a report of pupil progress on an ongoing and annual basis, showing the trends in gain or loss in pupil achievement over time in reading, language arts and mathematics for all years in which pupils are enrolled in or with the school district, qualified school or nonpublic online learning program provider for an entire school year and for which this information is available and a report of the pupil progress for pupils not enrolled in or with a school district, qualified school or nonpublic online learning program provider for an entire school year. The state board shall also provide each school district, qualified school and nonpublic online learning program provider with each pupil's statewide assessment scores and the statewide assessment scores for the school, school district, qualified school, nonpublic online learning program provider, county and state.

E. The school district, qualified school or nonpublic online learning program provider shall provide a parent or guardian of each pupil participating in the standardized norm-referenced testing part of the program with a copy of the pupil's scores in reading, language arts and mathematics, and the percentiles and stanines. The school district, qualified school or nonpublic online learning program provider shall provide a parent or guardian of each pupil with a copy of the pupil's scores on the statewide assessment and the associated scores for the school, school district, qualified school, nonpublic online learning program provider, county and state. The school district, qualified school or nonpublic online learning program provider shall make available to the public through the reports those scores for each school in the school district and for the school district, qualified school or nonpublic online learning program provider, county, state and nation.

F. Any the department of education or the state board of education shall establish and execute a testing window established and executed by the department of education or the state board for the administration of to administer the statewide assessment adopted pursuant to section 15-741 may that is not be longer than four consecutive school weeks and shall ensure that local education agencies receive test scores and assessment data from the third grade reading portion of the statewide assessment on or before May 15 of each academic year and that the scores and assessment data from all other portions of the statewide assessment adopted pursuant to section 15-741 are received by local education agencies on or before May 25 of each academic year. The department of education or the state board may not prohibit the superintendent or the staff of a local education agency from sharing statewide assessment data with the local education agency's district governing board or governing body or otherwise impede the sharing of statewide assessment data.

G. Notwithstanding subsection F of this section and sections 15-741 and 15-742, the department of education, subject to review and approval by the state board, may adjust the testing window for the statewide assessment adopted pursuant to section 15-741 in academic years that the state board is revising current proficiency levels or is establishing new proficiency levels for the statewide assessment adopted pursuant to section 15-741.

H. For the purposes of this section:

1. "nonpublic online learning program provider" means a person that charges tuition or fees to one or more qualified students as defined in section 15-2401 or 15-2401.01 for a nonpublic online learning program.

2. "qualified school" means a qualified school as defined in section 15-2401 that is not accredited by a regional or national accrediting organization. END_STATUTE

Sec. 3.3. Section 15-2401, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2401. Definitions

In this chapter, unless the context otherwise requires:

1. "Annual education plan" means an initial individualized evaluation and subsequent annual reviews that are developed for a qualified student who meets the criteria specified in paragraph 7, subdivision (a), item (i), (ii) or (iii) of this section to determine ongoing annual eligibility through the school year in which the qualified student reaches twenty-two years of age and whether the student may be eligible pursuant to section 36-2981 title 36, chapter 29, article 4 and should be referred for eligibility determination.

2. "Curriculum" means a course of study for content areas or grade levels, including any supplemental materials required or recommended by the curriculum, that incorporates the academic standards adopted by the state board of education and that is approved by the department.

3. "Department" means the department of education.

4. "Eligible postsecondary institution" means a community college as defined in section 15-1401, a university under the jurisdiction of the Arizona board of regents or an accredited private postsecondary institution.

5. "Parent" means a resident of this state who is the parent, stepparent or legal guardian of a qualified student.

6. "Qualified school" means a nongovernmental primary or secondary school or a preschool for pupils with disabilities that is located in this state or, for qualified students who reside within the boundaries of an Indian reservation in this state, that is located in an adjacent state and that is within two miles of the border of the state in which the qualified student resides, and that does not discriminate on the basis of race, color or national origin.

7. "Qualified student" means a resident of this state who:

(a) Is any of the following:

(i) Identified as having a disability under section 504 of the rehabilitation act of 1973 (29 United States Code section 794).

(ii) Identified by a school district or by an independent third party pursuant to section 15-2403, subsection J as a child with a disability as defined in section 15-731 or 15-761.

(iii) A child with a disability who is eligible to receive services from a school district under section 15-763.

(iv) Attending a school or school district that was assigned a letter grade of D or F pursuant to section 15-241 for the most recent year in which letter grades were assigned or is currently eligible to attend kindergarten and resides within the attendance boundary of a school that was assigned a letter grade of D or F pursuant to section 15-241 for the most recent year in which letter grades were assigned. A child who meets the requirements of this item and who meets the income eligibility requirements for free and reduced-price lunches under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) is not subject to subdivision (b) of this paragraph.

(v) A previous recipient of a scholarship issued pursuant to this section, unless the qualified student's parent has been removed from eligibility in the program for failure to comply pursuant to section 15-2403, subsection C.

(vi) A child of a parent who is a member of the armed forces of the United States and who is on active duty or was killed in the line of duty. A child who meets the requirements of this item is not subject to subdivision (b) of this paragraph.

(vii) A child who is a ward of the juvenile court and who is residing with a prospective permanent placement pursuant to section 8-862 and the case plan is adoption or permanent guardianship.

(viii) A child who was a ward of the juvenile court and who achieved permanency through adoption or permanent guardianship.

(ix) A child who is the sibling of a current or previous Arizona empowerment scholarship account recipient or of an eligible qualified student who accepts the terms of and enrolls in an Arizona empowerment scholarship account.

(x) A child who resides within the boundaries of an Indian reservation in this state as determined by the department of education or a tribal government.

(xi) A child of a parent who is legally blind or deaf or hard of hearing as defined in section 36-1941.

(b) And, except as provided in subdivision (a), items (iv) and (vi) of this paragraph, who meets any of the following requirements:

(i) Attended a governmental primary or secondary school as a full-time student as defined in section 15-901 for at least forty-five days of the current or prior fiscal year and who transferred from a governmental primary or secondary school under a contract to participate in an Arizona empowerment scholarship account. Kindergarten students who are enrolled in Arizona online instruction must receive one hundred hours of logged instruction to be eligible pursuant to this item. First, second and third grade students who are enrolled in Arizona online instruction must receive two hundred hours of logged instruction to be eligible pursuant to this item. Fourth, fifth and sixth grade students who are enrolled in Arizona online instruction must receive two hundred fifty hours of logged instruction to be eligible pursuant to this item. Seventh and eighth grade students who are enrolled in Arizona online instruction must receive two hundred seventy-five hours of logged instruction to be eligible pursuant to this item. High school students who are enrolled in Arizona online instruction must receive two hundred fifty hours of logged instruction to be eligible pursuant to this item.

(ii) Previously participated in an Arizona empowerment scholarship account.

(iii) Received a scholarship under section 43-1505 and who continues to attend a qualified school if the student attended a governmental primary or secondary school as a full-time student as defined in section 15-901 for at least ninety days of the prior fiscal year or one full semester before attending a qualified school.

(iv) Was eligible for an Arizona scholarship for pupils with disabilities and received monies from a school tuition organization pursuant to section 43-1505 or received an Arizona scholarship for pupils with disabilities but did not receive monies from a school tuition organization pursuant to section 43-1505 and who continues to attend a qualified school if the student attended a governmental primary or secondary school as a full-time student as defined in section 15-901 for at least ninety days of the prior fiscal year or one full semester before attending a qualified school.

(v) Attended a nonpublic school for pupils with disabilities in the prior year if placement at the school was approved by the department of education and contracted for by a public school district.

(vi) Has not previously attended a governmental primary or secondary school but is currently eligible to enroll in a kindergarten program in a school district or charter school in this state or attended a program for preschool children with disabilities. For the purposes of this item, a child is eligible to enroll in a kindergarten program if the child is at least five years of age on January 1 of the current school year, is under seven years of age, has not already completed a kindergarten program and is not enrolled in grade one of a private or governmental school in the current year.

(vii) Has not previously attended a governmental primary or secondary school but is currently eligible to enroll in a program for preschool children with disabilities in this state.

8. "Supplemental material" means a good that is directly and substantially related to the content of a curriculum and that is used to teach, enhance, extend or reteach the curriculum.

8. 9. "Treasurer" means the office of the state treasurer. END_STATUTE

Sec. 4.4. Section 15-2402, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2402. Arizona empowerment scholarship accounts; funds

A. Arizona empowerment scholarship accounts are established to provide options for the education of students in this state.

B. To enroll a qualified student for an Arizona empowerment scholarship account, the parent of the qualified student must sign an agreement to do all of the following:

1. Use a portion of the Arizona empowerment scholarship account monies allocated annually to provide an education for the qualified student in at least the subjects of reading, grammar, mathematics, social studies and science, unless the Arizona empowerment scholarship account is allocated monies according to a transfer schedule other than quarterly transfers pursuant to section 15-2403, subsection G.

2. Not enroll the qualified student in a school district or charter school and release the school district from all obligations to educate the qualified student. This paragraph does not:

(a) Relieve the school district or charter school that the qualified student previously attended from the obligation to conduct an evaluation pursuant to section 15-766.

(b) Require the qualified student to withdraw from a any school district or charter school before enrolling for an Arizona empowerment scholarship account if the qualified student withdraws from the school district or charter school before receiving any monies in the qualified student's Arizona empowerment scholarship account.

(c) Prevent the qualified student from applying in advance for an Arizona empowerment scholarship account to be funded beginning the following school year, subject to section 15-2403, subsection H.

3. Not accept a scholarship from a school tuition organization pursuant to title 43 concurrently with an Arizona empowerment scholarship account for the qualified student in the same year a parent signs the agreement pursuant to this section.

4. Use monies deposited in the qualified student's Arizona empowerment scholarship account only for the following expenses of the qualified student:

(a) Tuition or fees at a qualified school that requires all teaching staff and school personnel who have unsupervised contact with students to be fingerprinted and that either:

(i) Is accredited by a regional or national accrediting organization.

(ii) Administers the statewide assessment pursuant to section 15-741.

(b) Textbooks required by a qualified school.

(c) If the qualified student meets any of the criteria specified in section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii) as determined by a school district or by an independent third party pursuant to section 15-2403, subsection J, the qualified student may use the following additional services:

(i) Educational therapies from a licensed or accredited practitioner or provider, including and up to any amount not covered by insurance if the expense is partially paid by a health insurance policy for the qualified student.

(ii) A licensed or accredited paraprofessional or educational aide.

(iii) Tuition for vocational and life skills education approved by the department.

(iv) Associated goods and services that include educational and psychological evaluations, assistive technology rentals and braille translation goods and services approved by the department.

(d) Tutoring or teaching services provided by an individual who is not subject to disciplinary action by the state board of education for immoral or unprofessional conduct pursuant to section 15-505 or 15-534.04 or a facility that is accredited by a state, regional or national accrediting organization. The department shall ensure that any individual who provides tutoring or teaching services to one or more qualified students pursuant to this subdivision is not subject to disciplinary action by the state board of education. The department shall also remove any individual who is subject to disciplinary action by the state board of education from all platforms that the department provides to parents and qualified students for the purchase of goods or educational services using account monies.

(e) Curricula and supplementary supplemental materials.

(f) Tuition or fees for a nonpublic online learning program if the provider of the learning program administers the statewide assessment pursuant to section 15-741.

(g) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination or any exams related to college or university admission.

(h) Tuition or fees at an eligible postsecondary institution.

(i) Textbooks required by an eligible postsecondary institution.

(j) Fees to manage the Arizona empowerment scholarship account.

(k) Services provided by a public school, including individual classes and extracurricular programs.

(l) Insurance or surety bond payments.

(m) Uniforms purchased from or through a qualified school.

(n) If the qualified student meets the criteria specified in section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii) and if the qualified student is in the second year prior to the final year of a contract executed pursuant to this article, costs associated with an annual education plan conducted by an independent evaluation team. The department shall prescribe minimum qualifications for independent evaluation teams pursuant to this subdivision and factors that teams must use to determine whether the qualified student shall be eligible to continue to receive monies pursuant to this article through the school year in which the qualified student reaches twenty-two years of age. An independent evaluation team that provides an annual education plan pursuant to this subdivision shall submit a written report that summarizes the results of the evaluation to the parent of the qualified student and to the department on or before July 31. The written report submitted by the independent evaluation team is valid for one year. If the department determines that the qualified student meets the eligibility criteria prescribed in the annual education plan, the qualified student is eligible to continue to receive monies pursuant to this article until the qualified student reaches twenty-two years of age, subject to annual review. A parent may appeal the department's decision pursuant to title 41, chapter 6, article 10. As an addendum to a qualified student's final-year contract, the department shall provide the following written information to the parent of the qualified student:

(i) That the qualified student will not be eligible to continue to receive monies pursuant to this article unless the results of an annual education plan conducted pursuant to this subdivision demonstrate that the qualified student meets the eligibility criteria prescribed in the annual education plan.

(ii) That the parent is entitled to obtain an annual education plan pursuant to this subdivision to determine whether the qualified student meets the eligibility criteria prescribed in the annual education plan.

(iii) A list of independent evaluation teams that meet the minimum qualifications prescribed by the department pursuant to this subdivision.

(o) Public transportation services in this state, including a commuter pass for the qualified student, or transportation network services as defined in section 28-9551 between the qualified student's residence and a qualified school in which the qualified student is enrolled.

(p) Computer hardware and technological devices primarily used for an educational purpose. For the purposes of this subdivision, "computer hardware and technological devices":

(i) Includes calculators, personal computers, laptops, tablet devices, microscopes, telescopes and printers.

(ii) Does not include entertainment and other primarily noneducational devices, including televisions, telephones, video game consoles and accessories, and home theatre and audio equipment.

5. Not file an affidavit of intent to homeschool pursuant to section 15-802, subsection B, paragraph 2 or 3.

6. Not use monies deposited in the qualified student's account for any of the following:

(a) Computer hardware or other technological devices, except as otherwise allowed under paragraph 4, subdivision (c) or (p) of this subsection.

(b) Transportation of the pupil, except for transportation services described in paragraph 4, subdivision (o) of this subsection.

C. In exchange for the parent's agreement pursuant to subsection B of this section, the department shall transfer from the monies that would otherwise be allocated to a recipient's prior school district, or if the child is currently eligible to attend a preschool program for children with disabilities, a kindergarten program or any of grades one through twelve, the monies that the department determines would otherwise be allocated to a recipient's expected school district of attendance, to the treasurer for deposit into an Arizona empowerment scholarship account an amount that is equivalent to ninety percent of the sum of the base support level and additional assistance prescribed in sections 15-185 and 15-943 for that particular student if that student were attending a charter school.

D. The department of education empowerment scholarship account fund is established consisting of monies appropriated by the legislature. The department shall administer the fund. Monies in the fund are subject to legislative appropriation. Monies in the fund shall be used for the department's costs in administering Arizona empowerment scholarship accounts under this chapter. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. If the number of Arizona empowerment scholarship accounts significantly increases after fiscal year 2020-2021, the department may request an increase in the amount appropriated to the fund in any subsequent fiscal year in the budget estimate submitted pursuant to section 35-113. The department shall list monies in the fund as a separate line item in its budget estimate.

E. The state treasurer empowerment scholarship account fund is established consisting of monies appropriated by the legislature. The state treasurer shall administer the fund. Monies in the fund shall be used for the state treasurer's costs in administering the Arizona empowerment scholarship accounts under this chapter. If the number of Arizona empowerment scholarship accounts significantly increases after fiscal year 2020-2021, the state treasurer may request an increase in the amount appropriated to the fund in any subsequent fiscal year in the budget estimate submitted pursuant to section 35-113. Monies in the fund are subject to legislative appropriation. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The state treasurer shall list monies in the fund as a separate line item in its budget estimate.

F. A parent must renew the qualified student's Arizona empowerment scholarship account on an annual basis. The department of education shall verify that the parent's child is a qualified student as defined in section 15-2401 or 15-2401.01 in the year for which the parent seeks to renew the Arizona empowerment scholarship account. This subsection does not require the department to annually verify the child's disability for the purpose of section 15-2401, paragraph 7, subdivision (a), item (i), (ii) or (iii), if applicable.

G. Notwithstanding any changes to the student's multidisciplinary evaluation team plan, a student who has previously qualified for an Arizona empowerment scholarship account remains eligible to apply for renewal until the student finishes high school.

H. If a parent does not renew the qualified student's Arizona empowerment scholarship account for a period of three academic years, the department shall notify the parent that the qualified student's account will be closed in sixty calendar days. The notification must be sent through by certified mail, email and telephone, if applicable. The parent has sixty calendar days to renew the qualified student's Arizona empowerment scholarship account. If the parent chooses not to renew or does not respond in within sixty calendar days, the department shall close the account and any remaining monies shall be returned to the this state.

I. A signed agreement under this section constitutes school attendance required by section 15-802.

J. A qualified school or a provider of services purchased pursuant to subsection B, paragraph 4 of this section may not share, refund or rebate any Arizona empowerment scholarship account monies with the parent or qualified student in any manner.

K. Notwithstanding subsection H of this section, on the qualified student's graduation from a postsecondary institution or after any period of four consecutive years after high school graduation in which the student is not enrolled in an eligible postsecondary institution, but not before this time as long as the account holder continues using a portion of account monies for allowable expenses each year and is in good standing, the qualified student's Arizona empowerment scholarship account shall be closed and any remaining monies shall be returned to the state.

L. Monies received pursuant to this article do not constitute taxable income to the parent of the qualified student. END_STATUTE

Sec. 5.5. Section 15-2404, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2404. State control over nonpublic schools; prohibition; application

A. This chapter does not permit allow any government agency to exercise control or supervision over any nonpublic school or homeschool.

B. A qualified school that accepts a payment from a parent pursuant to this chapter is not an agent of the state or federal government.

C. A qualified school shall not be required to alter its creed, practices, or admissions policy or curriculum in order to accept students whose parents pay tuition or fees from an Arizona empowerment scholarship account pursuant to this chapter in order to participate as a qualified school, except as provided in sections 15-741 and 15-743 and section 15-2402, subsections B and J.

D. In any legal proceeding challenging the application of this chapter to a qualified school, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on qualified schools. END_STATUTE